Healthy, Prosperous, & Joyful 2008!!!

Good evening everyong!!!

I'm a little late in ringing in the new year with my blog. Sorry about that. My intentions were to lay down what my spreads (BUPS and BCS) were, but I never got around to doing that, so I will here without giving the charts.

Since I am a chartist, and want to be as efficient as I want and to get the most bang for my buck, I typically will choose getting into a BUPS at support as the stock just begins to move to the upside. Similar for BCS. There will be times the stock may be just a bit from my BCS or BUPS due to strike prices and I do not want to start out ITM on any of my spreads. This would be most evident in the spreads that are in $10 increments.

As I type this, my kids are outside playing, screaming, rollerskating, riding bike. I hear my 4 yr old son screaming, "BUT I LOVE YOU!!!" and my 7 yr old daughter saying, "NO....NO....NO!!" I'm not sure what the conversation is, but they go from hysterically laughing, to crying, to everything in between.

The weather earlier today was cold and I didn't want to leave the house. Now it's a little on the warmer side, enough for my kids to be in short sleeves and it be okay. I even have my front door opened to let in fresh air.

Okay, enough of the niceties. What are my spreads?

Bull Put Spreads (BPS):
- AAPL (3) on 12/27 for 190/185P for $1.57 credit (45.8%)
- BIDU (5) on 12/27 for 380/370P for $2.65 credit (36.1%)
- FSLR (5) on 12/27 for 250/240P for $2.70 credit (37%)
- POT (5) on 12/27 for 135/130P for $1.35 credit (37%)
- WYNN (3) on 12/27 for 110/105 for $1.47 credit (41.6%)
- PCU (5) on 12/27 for 100/95 for $1.00 credit (25%)
- SHLD (4) on 12/27 for 95/90 for $1.75 credit (53.8%)
- SPWR (5) on 12/27 for 120/115 for $1.05 credit (26.6%)
- CMI (5) on 12/31 for 130/125 for $1.05 credit (26.6%)

Bear Call Spreads (BCS):
- CME (3) on 12/27 for 710/720C for $2.45 credit (32.5%)
- X (3) on 12/27 for 125/130C for $1.22 credit (32.3%)
- GOOG (5) on 12/31 for 720/730C for $2.45 credit (32.5%)
- AMZN (5) on 12/31 for 95/100C for $1.60 credit (47.1%)
- BG (3) on 12/31 for 120/125C for $1.52 credit (43.7%)
- PCU (5) on 12/31 for 110/115C for $1.10 credit (28.2%)
- AAPL (5) on 1/2 for 200/210C for $3.14 credit (45.8%)

Note on the stocks for both the BUPS and BCS that are bolded in BLUE, my stops were triggered. I did not have them set in such a manner that would have them automatically execute, rather I looked at the chart to see if it made sense to be taken out or how I needed to get out of the spread, meaning close the whole spread or just buy back the short side. In all these cases, I bought back the short side to let the long side ride.

This will obviously change the ROI of those stocks and I expect to close all my spreads before expiration because if I do get most of the credit prior, why wait around and tie up that money.

We'll see how these work out. There are people that have been telling me how easy spreads are. In concept, it is. I also know that I play fairly close to support and resistance and perhaps if I did not and wanted to just settle for 10%, which is totally fine for some people and even for me, but that doesn't help me better understand how these spreads work.

Thanks to Debbie for sharing her insights on what TOS recommends, and I can sort of understand why TOS would recommend those things. They also are probably assuming that the majority of people whom should follow those are also not good chart readers. That is not to say I'm egotistical about my chart reading because I am not. There is much room for me to learn on how to be a better chartist.

I did notice on FSLR for the prior month that I did go further OTM in my spread, which did not give me quite as good of a return, but it allowed me to not have to babysit the trade as much. With so many spreads on (16), when my alerts went off for 6 of my stocks, that becomes like....EEEK!!! Gotta do something or at least watch.

As we can see, I'm thinking a lot about spreads and perhaps it's too much. The questions still remain as to how much different mistakes will cost me, whether they be accidental or due to ignorance or fear. I have yet to figure out how to properly document my spread trades. Yes, I do keep an Excel spreadsheet that gives me the costs, returns, position, but it does not have charts & annotations. I'm still also attempting to figure out how to properly annotate my charts.

Keep it simple as this will lend itself to more success.

Now my kids are blowing bubbles and picking orange and yellow cherry tomatoes off our tomato plants. They love eating the delicious tomatoes that we've watched grow since April.

For those whom are single and trading with little to no other responsibilities, count yourself in a very ideal trading situation to focus. As I attempt to focus with kids in my home who have a huge range of emotions in a matter of minutes and all sorts of commotions, homework, boo boos, hunger, and becomes a challenge to keep up with just some simple things like properly documenting all my trades, whether my momentum or spread trades, watch trading classes, backtesting, etc.

This year I am focusing on how to have good energy and really stand strong in who I am as a woman in Jesus Christ. Last year was what I believe to be an evening star which actually began in latter 2006. I pray I am in the morning star of this season and that things can only look up.
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